Canara Bank is trading lower by 4% to Rs 232, after reporting a marginal 2% year-on-year (yoy) growth in net profit at Rs 792 crore for the first quarter ended June 30, 2013 (Q1), due to higher provisioning for bad loans. The state-owned bank had profit of Rs 775 crore in year ago quarter.
The bank witnessed significant asset quality deterioration during the quarter, as Gross and Net NPA levels increased sequentially by around 17% each. Consequently, the provisioning expenses for the bank more than doubled on a yoy basis to Rs 916 crore during the quarter.
Net interest income (interest earned minus interest expense) for the bank grew at moderate 8.0% yoy to Rs 1,991 crore. Non-interest income grew strongly by 78.8% yoy to Rs 1,238 crore, probably boosted by treasury gains.
The stock opened at Rs 243 and hit a 52-week low of Rs 230 on BSE. A combined around one million shares have changed hands on the counter in early morning deals on BSE and NSE.
The bank witnessed significant asset quality deterioration during the quarter, as Gross and Net NPA levels increased sequentially by around 17% each. Consequently, the provisioning expenses for the bank more than doubled on a yoy basis to Rs 916 crore during the quarter.
Net interest income (interest earned minus interest expense) for the bank grew at moderate 8.0% yoy to Rs 1,991 crore. Non-interest income grew strongly by 78.8% yoy to Rs 1,238 crore, probably boosted by treasury gains.
The stock opened at Rs 243 and hit a 52-week low of Rs 230 on BSE. A combined around one million shares have changed hands on the counter in early morning deals on BSE and NSE.